Is The Interest On PPF Taxable?
- Annual Contribution: which is investors can deposit Rs 500 to Rs 1.5 lakh per year into a PPF account.
- Tax Benefit: Contributions are tax-deductible under Section 80C of the Income Tax Act.
- Tax-Free Interest: The interest earned on PPF is completely tax-free.
- Popularity: This makes PPF a preferred choice for long-term savers and tax planners.
How To Extend Your PPF Account?
After the 15-year maturity period, you can extend your PPF account in 5-year blocks in two ways:
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Active Extension: Submit the extension form (Form H) and deposit a minimum of Rs 500 per year. Interest will continue to accrue on both your existing balance and new contributions.
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Passive Extension: If you choose not to make new deposits, your account automatically enters passive extension mode. So, the existing balance continues to earn interest, and compounding quietly in the background base without any additional contributions.
This ensures your money keeps growing even after the initial 15-year period, giving you flexibility and continued tax-free interest benefits.
PPF Account FAQs: Continuing Deposits After Maturity
- Q1: How can I continue making deposits in my PPF account after 15 years?
A: You need to submit Form H within 1 year of your account’s maturity to extend it and continue contributions. - Q2: How long can I extend my PPF account for?
A: The account can be extended in 5-year blocks, allowing you to continue depositing and earn interest on the full balance. - Q3: What happens if I don’t make any deposits after 15 years?
A: Your money continues to grow, earning interest on the existing balance. However, new contributions and loan facilities will be unavailable unless you formally extend the account. - Q4: What is the key takeaway?
A: Even without new deposits, your PPF continues to earn tax-free interest, ensuring your savings keep growing over time.
(With Inputs)
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